What are Your Increasing Revenues Hiding ?

Many CEOs and business owners find their companies near a bankrupt crisis, despite their increasing revenues and high net profits.

Why this case happens to many businesses? Its definitely not a sudden event. It’s an accumulation of periods of wrong financial and organizational acts.

To clarify things for you , I will manifest what you consider a satisfying revenues that increase year by year might be hiding that would get your business into a deep financial crisis or even a bankruptcy situation.

Positive Revenues and even Net Profits are simply just numbers that do not reflect nor encompass the following values :

1- The value of the Accounts receivable.

2- The value of the Accounts Payable.

3- Your Operating Cash Flow.

4-Profit margins and if they are y going up or down .

Maybe you owe supplier, or there is un-collected cash, or you made investments like you paid for buying inventory or a land or factory or you are expanding locally or globally.

So always make sure to investigate numbers, do not take numbers as they are , because each number might be hiding some issues that you should know. In many cases they might be masky numbers. that you should protect your business by removing this mask, to uncover the real cash that you have ,and act as quick as possible to workout issues before they escalate to reach a point that would make it harder and harder to solve.

To protect your business ,thrive it , and to investigate the real reasons behind their numbers and your business overall performance , contact me now at Dr.salamamin@yahoo.com or via Skype : Dr.Salam Amin.

One Great Way to Generate Exceptional Amount of Profits in any Business Industry…

Many businesses struggle to increase their profits or even to stay float.And this happens because of different reasons like competition, recession, new entrant , oil prices, and a breakthrough …..

While there are many businesses that do not suffer nor struggle to breakeven nor to increase their profits despite various circumstances that they might face or might occur.And this also happens for several reasons like they provide exceptional products and services and they are convenience, innovative, responsive, and high value products and services….But, still I found that many of these type of businesses have one important thing in common that makes them generate exceptional amount of profits and even provide higher rates than their rivals. It is that they target niche-based customers.

Niche based customers are a great resource for abundant profits .To know your niche target audience and start earning exceptional amounts of profits , answer these questions and then start acting upon them. The questions are :

1- Who are the customers that are not served by my competitors and I can serve them? You can think that they might not be served maybe because they are in distant places . Like people living in the suburbs and would like to go to college or would like to enjoy going daily to your gym or buying your security cameras or…..

2- Who are the customers that are served by other business entities and I can serve them better and even at a lower cost ? like money transfers can be done through western union or internet banking , or paypal or ….How can you serve people who are suffering using these methods and tools to transfer their money, maybe because of high transfer fees, or they are not available and easy to use by everyone due to restrictions imposed by these companies….

3- Who can buy our products and services , but its useless to them or it won’t be efficient to them maybe because of lack of good internet connection , water and electricity availability?

4- Who wants to enjoy using our products and services but can’t because there is no suitable offer for them or they can’t afford them ? and you as a business owner can make some changes that wont cost you much and enable you to serve them. Like entrepreneurs or business owners who want to travel for business or attend conferences but cant due to high https://www.linkedin.com/redir/invalid-link-page?url=costs%2eSo you as a hotel or travel agency or airlines can conduct agreements with banks to serve this niche.

5- Who aren’t buying our products and services and are buying totally different types of products and services to solve their problems? Like for example in the medical industry people try to go to the organic products to solve their medical problems or to cure diseases.

The idea here is to keep asking your self how I can be niche focused , and most important here to diversify your portfolio of niches in order to maximize your profits.

If you want me to help you in identifying your portfolio of niches to earn exceptional profits, contact me now via email : Dr.salamamin@yahoo.com or Skype : Dr.Salam Amin .

How to Profit in a Highly Competitive Market ?

How to Profit in a Highly Competitive Market ?

How to generate profits in a highly competitive market ? Well, the answer is simple DON’T COMPETE.

Competition implies consuming time, effort , resources , value diminishing and decreasing profit margins.So, do you still want to compete ???

Ok then let’s face it ! why you want to compete ?is it because you are pursuing larger market share and thus increasing your profits. Or is it also about dominating the market so you can impose your own prices.

What really happens most of the time when you compete is that you get to increase your cost structure trying to serve more or saturate the market or serve the current customers better ….And then you will try to create those desperate market offers or discounts or differentiate your service or product .

Let’s say you dominated the market and you achieved the largest market share possible. BUT, does that mean you are a winner? maybe yes , but for how long? especially in our extremely dynamic era with its surprising trends??? What is dominating today may be swiped away with with a new trend or new invention.

I think you need also to ask yourself that if I had the largest market share would that mean or guarantee higher profits than everyone else?

Actually, there is a false understanding that the larger the market share the more profits you gain!!!

The truth is the more you are niche-focused the more the profits you earn. Let’s take an example from the auto industry; Toyota globally have a higher market share than Bentley while Bentley generates more profits than Toyota.

Another example from the hospitality industry four and five stars hotels exist everywhere much more than luxury resorts like the ones in Maldives or in Santorini , but still the luxury resorts make more profits, they are even less likely to suffer from seasonal variations.

Another example from the aviation and airlines industry there are airplanes that anybody can go for and there are private jets.

What does this tell us ? or What does niche focused mean? When you are Niche-Focused you will : 1-Earn more Profits and and have higher profit margin . 2-You will need to sell Less. 3- And your cost structure will be Lower .

But how can you be niche focused ? I will give you 4 Tips out of 12 to put you on the correct track to choose your niche; 1- Study the process that your targets experience with a certain product or service. like before using the product or service , then during using it and after using it. You will get to know a lot of gaps that competitors aren’t covering and that would be a great Niche opportunity to utilize. Like when you do your daily workout or when you read a book , or when you use your laptop or even use your toothpaste. Study the journey and tap the un-tapped needs . Look for Pain Points. 2- Explore what issues are prohibiting your targets from buying a certain product in your area of interest. Like why aren’t they using Paypal services as a payment gateway? 3-Ask Influencers ( could be a parent or buyer or a purchasing director or financial manager or a retailer or dealer …) what are the problems when buying a certain product or service, you will reveal a lot , you will get to know many pain points that are uncovered. 4- Think of people who might have an interest in common life aspects and would love to have and satisfy but can’t for different reasons. Like older people who would like to have a bachelor degree or a high education certificate in a certain field.

In addition to those 4 tips please keep in mind these extremely valuable directives :

1- Do not pursue incremental improvements because they will not distinguish you nor you will be providing a real value to your targets but you are only pursuing contemporary gain . 2- Do not benchmark your service or product with industry key players or major competitors because you will limit your thinking of finding your creative targeted niche. 3- Do not Pursue price competition because you will decrease your profit margin and increase your costs.

Please understand that competition is against business solid successful continuity , because you will be draining your resources , efforts, money , time and the most of all you are swimming far away from what customers value .

If you want to master tactics and mechanisms in achieving Niche-Based Businesses (Extremely Profitable Zone ) then please feel free to contact me via email: Dr.salamamin@yahoo.com or via Skype : Dr.Salam Amin       .

 

 

How Could Profits lead to Bankruptcy?

How Could Profits lead to Bankruptcy?

If your Business is Profitable but still it is getting sick, then this is called the case of a profit trap that usually businesses get into unconsciously.

In this blog I will be talking about four profit traps that could lead businesses to bankruptcy.

Profit trap no. 1 : Your business is profitable but still it is not generating enough cash to grow, to invent, to innovate, to improve, for shareholders distribution, or for capital purchases…And the reasons for that vary; it might be dampened sales rate,  frustrated demand , fluctuations in the commodity pricing and availability, a rival poaching your customers or a technological shift that your business is not aware of. In this case of a profit trap I advise you to consider these solutions after investigating the reasons behind your current business situation:

  • Broaden or shift your resources .
  • Conduct smart agreements with suppliers.
  • Creatively entice customers needs and usage.
  • Go for clustering…
  • Look for multiple niches…
  • Partner intelligently with key players.

 

Profit trap no. 2 : Detrimental Profits.

And that is when your profits enchants in too many roots that are profitable and expensive but perishable and your resources are bounded and your paramount is to get the highest return out of them. So, in this case you are supposed to specify your first and foremost streams in order to obtain and recoup the highest return out of your  available and confined resources.

 

Profit trap no. 3 : Diluted Profits.

It is when your business is generating great profits but they are diluted due to over expanding .Sure, we business owners like to expand but dear you should first invest in strengthening your business and then expand wisely.

 

Profit trap no. 4 : Cash is not collected.

In this case of a profit trap your business is profitable and it is generating enough cash but the cash isn’t collected. If you are conducting transactions and giving credits state duration and rate limits. And I prefer if you use the cash paying privileges technique.  

 

Please be aware of these traps they could end your business in an unexpected way or it could be sold to a competitor, remember your business is profitable.

 

Remember you can always consult me at any time about your  business .You are more than welcome . Let me share you your  Success story.

Drsalamamin@yahoo.com

Whatsapp me  00962795116324

Skype Dr.Salam Amin.

Please after you read my blog leave a comment.I will be delighted to hear from you.

 

The Most Important Positive and Negative Impacts  of Brexit on  European Market, GCC & MENA region.

The Most Important Positive and Negative Impacts  of Brexit on  European Market, GCC & MENA region.

A lot of debate, speculations and assumptions are still going on آ regarding the huge event of Brexit because of آ the uncertainty that covers its possible positive and negative implications on the آ global economy either directly or indirectly.

In this blog I will put آ to you the most important positive and negative impacts of Brexit on European the Market, GCC, Japan ,China & Mena region. I will also put some quick tips for businesses to help them move forward.

Some countries will enjoy the positive effects of آ Brexit while others will fear the threatening challenges that might emerge and tackle their interests as a result of آ Brexit. Well, at least this is what many think of.

In my opinion as a Turnaround specialist and strategic business advisor, آ Britain  decision to enjoy an autonomy over its economy can be turned around آ for each business sector even for each company or corporate آ to benefit from for their own good despite level of Brexit impact on their location and economy.Definitely , we can’t deny some negative effects but still with smart and strategic restructuring and Turnaround moves آ each business sector, company , MNC or corporate can diminish the side effects and maximize the positive ones of Brexit.

Note: At the end of this blog I will be giving some tips for businesses to overcome financial and economic issues as a result of Brexit.

I First put to you first beneficial links about Brexit Hidden Opportunities and Threats :

Brexit and The EU Market:

Brexit Impact on the MENA آ region & GCC.

Brexit and Japan

Brexit and China

Hopefully, I saved you some time putting some major آ beneficial links for you to recap the potential effects of Brexit on different regions. But I also would like to mention some quick tips for every business owner and every person responsible for running a business of any kind and sector, and these are:

  • Broaden your thoughts and strategies and think out side the box to get advantage from Brexit impact and to turn negative effects to positive effects.

  • Re-build and restructure your business platforms and profits approaches…

  • Conduct new -creative types of arrangements, agreements ,cooperations and partnerships to gain new type of privileges that would offset any losses or disadvantages resulting from Brexit.

  • Expand into new lines of Business…Its a great Opportunity.

  • Laser -Focus and think of the unexpected implications of Brexit and start preparing …

  • Shift and Diversify your Business Focus.

Business success and sustainability needs smart آ work and actions despite circumstances and national or global events…So let me آ share and boost your آ business success, and please don’t  hesitate to contact me Dr.Salam Amin .

dr.salamamin@yahoo.com

Skypes : Dr.Salam Amin

www.sosyourbusiness.com آ